French utility giant EDF gets to the forefront of the Saudi energy market

Special French utility giant EDF gets to the forefront of the Saudi energy market
Dumat Al Jandal Wind Farm (Supplied)
Short Url
Updated 11 August 2022

French utility giant EDF gets to the forefront of the Saudi energy market

French utility giant EDF gets to the forefront of the Saudi energy market

The year 2022 marks a decade of growth for the EDF Group in Saudi Arabia. Active in the Kingdom since 2012, the group’s initial focus was on a single line of business for the Saudi National Atomic Energy Project, as announced by the King Abdullah City for Atomic and Renewable Energy.

In line with the Saudi Vision 2030 and EDF’s 2030 sustainability strategy, the group began to diversify its lines of business, a total of five, and expand in the Kingdom to support its sustainability and energy transition objectives beyond the civil nuclear program.

In 2017, the EDF Group, through EDF Renewables, participated in all public renewable energy tenders organized by the Saudi Ministry of Energy to develop utility-scale projects in the Kingdom.

In 2019, EDF was awarded the development of the largest and most powerful wind farm in the Middle East: the 400 megawatts Dumat Al Jandal Wind Farm. The fully operational project provides clean energy to more than 70,000 Saudi households. In 2021, the 300 MW South Jeddah Noor Solar Project had also been awarded to the French giant, positioning EDF as the first non-regional foreign investor within the Saudi renewable energy market.

EDF’s growth and development in the Kingdom were further strengthened in 2021 by establishing the regional headquarters of the group’s energy services arm, Dalkia Middle East, in Riyadh. The group is also expanding its operations within the Saudi low-carbon energy services sector to incorporate energy efficiency, district cooling networks, operations and maintenance, and exploring the geothermal energy potential in the Kingdom.

Dalkia Middle East is currently in the execution phase of the District Cooling Project, based on a design, build and operate model with the Prince Mohammed Bin Salman Nonprofit City. In addition, the EDF subsidiary is actively involved in Tarshid’s Energy Efficiency Program and leading the operation and maintenance of the Kingdom Tower in Riyadh.




Dumat Al Jandal Wind Farm (Supplied)

As one of the leading operators of hydropower plants in the world, through EDF Hydro, the group firmly believes in the NEOM landscape and considers it to be the perfect location to utilize pumped storage hydropower. “We have completed pre-feasibility site selection studies in NEOM and are eager to provide further support and expand our cooperation with this ambitious city.

The EDF Group has, beyond the technical services provided by EDF Hydro for PSH, the ambition to invest in such assets in the Kingdom,” said Omar Aldaweesh, EDF general manager for Saudi Arabia and Bahrain.

From low-carbon energy generation to energy services for industrial clients, the EDF International Network, which represents the EDF-owned French Distribution Service Operator on the international scale, is currently executing a project management office contract with the Saudi Electricity Co. to support the digitalization of their distribution network in the Kingdom.

The EDF Group has empowered its subsidiaries and various divisions’ expansion in the Saudi market while maintaining its mandate concerning civil nuclear energy and other complex projects in the Kingdom.

Expansion projects

The EDF Group, alongside its partner MASDAR, is launching Emerge KSA, a 50 percent-owned joint venture between the two leading companies, with its ongoing pipeline, which will be officially established in the Kingdom by the end of 2022.

The JV, providing turnkey energy solutions, is currently active in the UAE to develop combined renewable power solutions alongside energy efficiency services within the commercial and industrial market, with major projects already in operation in Abu Dhabi.

“Emerge KSA has massive potential in Saudi Arabia, not only in the C&I market but in off-grid overall. We have seen many projects exceed dozens of MW capacity. The objective is to target more integrated solutions within Emerge KSA by enabling the hybridization of existing carbonized power systems,” said Aldaweesh.

The C&I market in the Kingdom is known to be the largest in the region, with various prospects presently under assessment by Emerge KSA.




Visit of global CEO, Jean Bernard Levy (Supplied)

EDF’s engagement across the Saudi energy value chain

The EDF’s “raison d’etre” aims to build a carbon-free future by generating clean electricity and offering innovative solutions to the global energy market. “The group’s targets are certainly in line with the Saudi Vision 2030 and the Saudi Green Initiative’s objectives,” said Aldaweesh.

“We are proud of our engagement throughout the entire Saudi energy value chain, from generation to end user, and our ever-expanding cooperation with the Saudi government in that regard,” he added.

Moreover, and with respect to low-carbon resources, the EDF Group is currently in discussion with the Saudi government on the development of geothermal energy and hydroelectricity in the Kingdom.

EDF is also exploring electrical network investments in the Kingdom, such as transmission and distribution.

The group is targeting opportunities for two of its main subsidiaries involved in smart city solutions: Urbanomy, for urban planning services to support the decarbonization of the Saudi real estate sector, and Citegestion, which has the expertise to provide city monitoring services that could be highly beneficial for projects under the Saudi Public Investment Fund.

Active in the global hydrogen value chain, EDF announced in April of 2022 a plan to develop 3 gigawatts of low-carbon hydrogen projects worldwide by the end of the decade, derived from renewable or nuclear power. “We believe that Saudi Arabia offers the perfect ground to be a worldwide hydrogen player, and the group is eager to be part of the Kingdom’s vision on that front,” confirmed Aldaweesh.

Challenges and opportunities 

The current rise in oil prices does not seem to constitute a challenge. Aldaweesh believes there will be no impact on EDF’s activities in the Kingdom, as the Saudi government has already revealed its clear sustainability plans and will provide the necessary support to reach the set targets.

The first Saudi appointed general manager within EDF, added, “The group continues its commitment to support the decisive energy transition in Saudi Arabia, and we truly believe that we have merely begun scratching the surface in terms of our potential in the Kingdom, as well as our diverse wide-ranging capabilities which can position the EDF Group as an essential player in the Saudi energy sector.”

 


Gas from Russia’s Nord Stream 2 pipeline leaks into Baltic Sea

Gas from Russia’s Nord Stream 2 pipeline leaks into Baltic Sea
Updated 9 sec ago

Gas from Russia’s Nord Stream 2 pipeline leaks into Baltic Sea

Gas from Russia’s Nord Stream 2 pipeline leaks into Baltic Sea
  • President Vladimir Putin in September chided the West for keeping Nord Stream 2 shut

BERLIN/COPENHAGEN: Danish authorities on Monday asked ships to steer clear of a five nautical mile radius off the island of Bornholm after a gas leak overnight from the defunct Russian-owned Nord Stream 2 pipeline drained into the Baltic Sea.
The German government said it was in contact with the Danish authorities and working with local law enforcement to find out what caused pressure in the pipeline to plummet suddenly. Denmark’s energy ministry declined to comment.
On Monday evening, the operator of the Nord Stream 1 pipeline, which ran at reduced capacity since mid-June before stopping supplies altogether in August, also disclosed a pressure drop on both lines of the gas pipeline.
“The reasons are being investigated,” Nord Stream AG said on its website, without disclosing further information.
The pipeline has been one of the flashpoints in an escalating energy war between Europe and Moscow since Russia’s invasion of Ukraine in February that has pummelled major Western economies and sent gas prices soaring.
“A leak today occurred on the Nord Stream 2 pipeline in the Danish area,” said Denmark’s energy agency in a statement.
The German network regulator president, Klaus Mueller, said on Twitter the pressure drop in both pipelines “underscores the German network regulator’s assessment that the situation is tense.”
The regulator said it was currently not known what had caused the pressure drop, adding the event had no impact on security of supply in Germany and that the country’s gas storage levels were around 91 percent.
Danish maritime authorities had issued a navigation warning and established a zone around the Nord Stream 2 pipeline “as it is dangerous for ship traffic,” it added.
Nord Stream 2’s operator said pressure in the pipeline, which had contained some gas sealed inside despite never becoming operational, dropped from 105 to 7 bars overnight.
The pipeline, which was intended to double the volume of gas flowing from St. Petersburg under the Baltic Sea to Germany, had just been completed and filled with 300 million cubic meters of gas when Germany canceled it days before the invasion.
NO CLARITY
“Overnight the Nord Stream 2 landfall dispatcher registered a rapid gas pressure drop on Line A of the Nord Stream 2 natural gas pipeline,” Nord Stream 2’s operator said in a statement.
“Investigation is ongoing.”
European countries have resisted Russian calls to allow the Nord Stream 2 pipeline to operate and accused Moscow of using energy as a weapon. Russia denies doing so and blames the West for gas shortages.
“We are currently in contact with the authorities concerned in order to clarify the situation. We still have no clarity about the causes and the exact facts,” said a statement from the German economy ministry.
The Swiss-based operator, which has legally been wound up, said it had informed all relevant authorities about the leak.
Russian gas exporter Gazprom referred questions about the incident to the Nord Stream 2 operator.
Russia has cut off gas supplies to several countries and also halted flows through the Nord Stream 1 pipeline, blaming Western sanctions for hindering operations.
President Vladimir Putin in September chided the West for keeping Nord Stream 2 shut.
Monday’s gas leak happened a day before the ceremonial launch of the Baltic Pipe carrying gas from Norway to Poland.
The project is a centerpiece of Warsaw’s efforts to diversify from Russian gas. Danish Prime Minister Mette Frederiksen is due to travel to Poland on Tuesday to mark the occasion.
Nord Stream 2 was widely unpopular among Danish lawmakers and the country in 2017 passed a law which allowed it to ban the project from passing through its territorial waters on security grounds.
But Nord Stream 2 later changed the original route to steer it through Denmark’s exclusive economic zone, where this veto could not be applied.

 


ECB eyes blockchain for settling bank transactions, says official

ECB eyes blockchain for settling bank transactions, says official
Updated 26 September 2022

ECB eyes blockchain for settling bank transactions, says official

ECB eyes blockchain for settling bank transactions, says official
  • The ECB is among a number of central banks around the world working on digital versions of their currency in response to the popularity of digital tokens

FRANKFURT: The European Central Bank is studying ways of settling transactions between banks on a blockchain in a bid to keep control of money even if lenders switch to distributed ledgers, ECB board member Fabio Panetta said on Monday.

The ECB is among a number of central banks around the world working on digital versions of their currency in response to the popularity of digital tokens such as Bitcoin and the blockchain technology that powers them.

This distributed ledger technology is predicated on market participants verifying transactions and keeping a copy of them rather than relying on a trusted party, such as a central bank.

On top of a digital euro for consumers, the ECB is looking at how it could let banks settle wholesale transactions between them on a distributed ledger, rather than the central bank’s own.

“Despite the uncertainties surrounding DLT’s potential, we want to be prepared for a scenario where market players adopt DLT for wholesale payments and securities settlement,” Panetta said. 

We want to be prepared for a scenario where market players adopt DLT for wholesale payments and securities settlement.

Fabio Panetta, ECB official

He added letting banks settle among themselves or use stablecoins, which are crypto tokens pegged to a conventional currency, would result in “trading and liquidity becoming fragmented.”

Meanwhile, giving stablecoins the ECB’s backing would “outsource the provision of central bank money to private entities, endangering monetary sovereignty,” Panetta said.

As a possible solution, Panetta said the ECB might build a bridge between the private sector’s blockchain platforms and its own Target 2 settlement system.

Alternatively, it could make central bank money — the claim against the ECB in which wholesale transactions are settled — available on those platforms or create its own, he added.


PIF’s Jada signs MoU with Invest Seoul to boost startups, SMEs

PIF’s Jada signs MoU with Invest Seoul to boost startups, SMEs
Updated 26 September 2022

PIF’s Jada signs MoU with Invest Seoul to boost startups, SMEs

PIF’s Jada signs MoU with Invest Seoul to boost startups, SMEs

RIYADH: Fund of Funds Company, known as Jada and owned by Saudi Arabia’s Public Investment Fund, has signed a memorandum of understanding with Invest Seoul Agency to promote startups and SMEs in both countries.

In a statement posted on Jada’s website, the MoU signed between the two parties seeks to exchange information on entrepreneurial policies and best practices and support startups aspiring to enter the Saudi or Korean markets. 

Invest Seoul Agency is a foreign investment promotion agency established by the Seoul Metropolitan Government.

Mazin Al-Shanbari, director of venture capital, Jada, said the MoU will “contribute to developing the business ecosystem for startups” and support the entry of SMEs “that aim to conduct business in the other country.

As per the MoU, the PIF’s Jada and the Korean agency will facilitate exchange of personnel and organize events such as roadshows, conferences and exhibitions to help entrepreneurs from both sides explore opportunities and help them start business.


Moody’s downgrades MEDGULF KSA’s insurance financial strength rating to Ba2

Moody’s downgrades MEDGULF KSA’s insurance financial strength rating to Ba2
Updated 26 September 2022

Moody’s downgrades MEDGULF KSA’s insurance financial strength rating to Ba2

Moody’s downgrades MEDGULF KSA’s insurance financial strength rating to Ba2

RIYADH: Moody's Investors Service has downgraded the Mediterranean and Gulf Cooperative Insurance and Reinsurance Co insurance financial strength rating to Ba2 from Ba1. 

The firm, also known as MEDGULF KSA, is a Saudi joint stock company, and has seen its outlook changed from positive to negative.  

This reflects the challenges MEDGULF KSA faces in improving its underwriting performance and continued pressures on its capitalisation. 

In addition, Moody’s expects the company’s financial flexibility to become more constrained since its rights issue in 2021 with greater uncertainty around its ability to access additional external capital given persistent underwriting losses.

Meanwhile, Moody's has also downgraded the local and foreign currency long-term issuer ratings of Sharjah Islamic Bank to Baa2 from Baa1. 

In addition, the bank's baseline credit assessment was downgraded to ba2 from ba1, while the outlook on its long-term issuer ratings changed to stable from negative.

Moody's says that the downgrade of the bank’s long-term ratings captures the downgrade of the bank’s BCA to ba2 from ba1 and reflects primarily the deterioration in the bank's asset quality.


UAE In-Focus — Arada to open $1.7bn Sharjah office park

UAE In-Focus — Arada to open $1.7bn Sharjah office park
Updated 26 September 2022

UAE In-Focus — Arada to open $1.7bn Sharjah office park

UAE In-Focus — Arada to open $1.7bn Sharjah office park

DUBAI: Sharjah property developer Arada is boosting its portfolio with a 6.3 billion dirham ($1.71 billion) office park and five new residential projects in the UAE.

Arada CBD is spread over 4.3 million sq. feet of prime leasable space located in 40 smart office blocks. 

It will meet demand for a contemporary business district in Sharjah and will cater to the needs of companies throughout the UAE and beyond in the future, Emirates News Agency WAM reported.

According to analysis firm Oxford Economics, the Sharjah economy is projected to grow at a rate of 5 percent annually for the medium-term due to the launch of Arada CBD.

With 96 percent of its gross domestic product derived from non-oil sectors, the Emirate attracted 808 million dirhams in foreign direct investment in 2021, making it one of the most vibrant and diverse economies in the region.

Arada CBD’s first cluster is scheduled to break ground in 2023 and will feature 812,000 sq. feet of Grade A and Grade B leasable space spread across eight buildings.

There are also 1,666 parking spaces, 76,000 sq. feet of landscaped green space, and 26,500 sq. feet of retail space in the cluster.

Arada will relocate its headquarters to the first building of Arada CBD.

When Arada CBD’s first cluster is ready in 2025, the Aljada community will already have 20,000 residents.

Aljada, Sharjah’s largest ever project, covers 24 million sq. feet and will transform the Emirate.

There are numerous residential districts in Aljada, as well as extensive retail, hospitality, entertainment, sports, educational, and health care facilities, all integrated into a green urban master plan.

Approximately 1,500 homes have already been built at Aljada, and 6,000 more are currently being built.

Abu Dhabi and Dubai are the top most liveable cities in the Middle East and Africa

A massive vaccination drive against the COVID-19 pandemic made Abu Dhabi and Dubai among the safest and fastest to recover from the pandemic in the Middle East and Africa, according to the Economist Intelligence Unit.

Both cities remain the most liveable in the region.

As a result of the vaccination campaign, the country avoided a full-scale lockdown in 2021 and, so far, in 2022, EIU said.

The report, published on Sept. 26, marks 1,000 days since the first COVID-19 case was announced to the World Health Organization in December 2019.

According to EIU, Abu Dhabi and Dubai have largely remained open for business since the first wave in 2020.

All target groups were vaccinated against COVID-19 by the UAE in June. Dubai was one of the first major cities to reopen during the pandemic.

Authorities implemented strict policies to contain the pandemic and reopen the city earlier.

As a result of strong trust between the two emirates, Dubai Airport handled 7.12 million passengers while Abu Dhabi Airport handled 6.3 million.

This year, Dubai’s population crossed the 3.5 million mark for the first time.

The region’s top cities to live in include Tel Aviv, Kuwait City, and Bahrain after the two emirates. Damascus, Lagos, Tripoli, Algiers, and Harare are the least liveable cities.